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The impact of trust on the mode of transaction governance between manufacturer and distributor

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  • Berulava George
  • Lezhava David

Abstract

The goal of the project is to explore main determinants of transaction governance mode between manufacturer and distributor firms. The model proposed in this paper integrates the concept of trust with main transaction cost economics’ dimensions and is formulated in the form of multinomial logit function. The model will be estimated with data from a sample of Georgian manufacturing industry. The main hypothesis of the study is that trust will modify the influence of traditional transaction cost economics dimensions on the choice of exchange governance mode.

Suggested Citation

  • Berulava George & Lezhava David, 2007. "The impact of trust on the mode of transaction governance between manufacturer and distributor," EERC Working Paper Series 07-05e, EERC Research Network, Russia and CIS.
    • Handle: RePEc:eer:wpalle:07-05e
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    References listed on IDEAS

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    Cited by:

    1. Berulava, George, 2013. "Do Trust-Based Relations Improve Firm’s Performance? Evidence from Transition Economies," MPRA Paper 48430, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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